Energi Mega Persada will use the proceeds to pay debt and working capital. The field in the Masela block of the Arafura Sea is estimated to have 18.47 Tcf of certified gas reserves, Energi Mega Persada said.

Inpex plans to build a floating LNG plant with an initial gas production capacity of 2.5 million tons a year.

The Japanese government is Inpex's largest shareholder with a 19% stake.